Incoming IRS Penalty Relief!
Audio version available here:
Length: approx. 1 min. 30 sec.
Good news for those who owe the IRS back taxes! The IRS is using $1 billion to provide automatic penalty relief to “approximately 4.7 million” taxpayers across the country.
The relief is meant for “individuals, businesses and tax-exempt organizations” who did not receive follow-up collection notices when they normally should have during the COVID-19 pandemic’s mailing pause. Despite not being informed of their continuing tax balance and failure-to-pay, penalties and interest continued to accrue on taxpayer accounts.
Now, the IRS will once again send notices through the mail informing the taxpayer of their tax liability and any relief they have qualified for. According to IRS guidance, the penalty relief will mostly apply to individuals making $100,000 or less a year.
As part of this “common-sense approach” to provide relief for taxpayers who were not made aware of their outstanding balance through automated letters, this relief will be automatically applied to individuals with less than $100,000 in assessed taxes for tax years 2020 or 2021, or who only received a balance due notice between February 5th, 2022, and December 7th, 2023. This is true for each eligible tax return, and the first round of relief will run through the month of January 2024.
To read our IRS source with more details on this relief opportunity, please click the article linked below. For personalized tax advice and tax planning, reach out to XQ CPA’s experienced tax professionals. Give us a call or use our online booking system at your convenience. We are here to provide expert guidance.
Phone: 832-295-3353
Online Booking: https://xqcpa-bookme.acuityscheduling.com/schedule.php
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